Bank of America lost its bid on Tuesday to overturn a jury verdict that resulted in a $1.27 billion civil penalty over the packaging and selling of toxic residential mortgage-backed securities to Fannie Mae and Freddie Mac in the run-up to the financial crisis, according to media reports.
Read More »Settlements Cut Into Citigroup, Bank of America Net Earnings for Q4, Full-Year 2014
Settlements with the federal government for mortgage servicing misconduct led to sharp year-over-year declines for Citigroup and Bank of America in both fourth quarter and full-year net incomes in 2014, according to Q4 2014 and year-end earnings statements for both banks released on Thursday.
Read More »Former Countrywide Exec to Collect $57 Million for Whistle-Blower Suit
Former Countrywide executive Edward O'Donnell will receive $57 million for his role in filing a whistle-blower lawsuit against Bank of America over the sale of faulty mortgage-backed securities, according to a report from Bloomberg News.
Read More »Republicans Request More Information from Justice Department on MBS Settlements
Republican lawmakers are requesting more information from the U.S. Department of Justice on settlements in the past year with Bank of America and Citigroup over the sales and packaging of mortgage-backed securities, according to a press release from the U.S. House of Representatives Judiciary Committee.
Read More »Report: SEC Grants Bank of America Partial Relief From Additional Sanctions in Settlement
The U.S. Securities and Exchange Commission (SEC) agreed to partially waive the additional sanctions that could have been imposed on Bank of America following a record settlement in August over the sale of residential mortgage-backed securities, according to sources familiar with the case in a report from Bloomberg News.
Read More »U.S. Supreme Court Agrees to Hear Bank’s Appeal in ‘Stripping Off’ Mortgage Cases
Bank of America's case against two underwater Florida homeowners who filed for Chapter 7 bankruptcy in order to eliminate the liability on their second mortgages – a practice known as “stripping off” – has made it to the highest court in the nation.
Read More »Lender Does Not Plan to Relax Mortgage Credit Standards
The issue is a commonly cited problem for younger first-time homebuyers, who, in addition to facing tight mortgage criteria, also have to clear the hurdle of saving for a down payment.
Read More »Report: Disagreement Among SEC Commissioners Stalling Bank of America Settlement
Bank of America's record $16.65 billion settlement with several government agencies over the sale of toxic residential mortgage-backed securities (RMBS) has been stalled by an internal disagreement within the U.S. Securities and Exchange Commission (SEC), sources familiar with the case said in a report from Bloomberg News.
Read More »Lenders Appeal Court Decision Allowing HOAs to Extinguish Mortgages
Several mortgage lenders have asked the Nevada Supreme Court to reverse a decision it made in September that a homeowners association's (HOA) super priority lien can extinguish a first deed of trust nonjudicially on a residential property.
Read More »Legal Costs Hurt Bank of America’s Q3 Earnings
Bank of America's Q3 earnings took a hit from a record $16.65 billion settlement with the Justice Department and other federal and state agencies in August to settle charges against the bank related to the sale of toxic mortgage-backed securities. That settlement cost the bank $5.3 billion (pretax), or $0.43 per share after tax.
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